economy

Reasons for a Down Housing Market by 2020

Reasons for a Down Housing Market by 2020

These should be happy times for the housing industry. The market is booming, with more people working at higher pay, and with the large millennial generation reaching prime home buying age.

Home prices haven't declined nationally, at least based on the most commonly followed indexes. However, their rate of growth has declined, and more and more home sellers are finding they need to reduce asking prices to discover a buyer.

Given how fundamental housing is to the wider economy -- it is the largest driver of both wealth and indebtedness for the majority of households, and its changes have regularly been significant factors in past booms and busts -- this recession is not something to be taken lightly for anybody hoping the good times will last.

Housing Market Cools, Home Prices Too High

Housing Market Cools, Home Prices Too High

The affordability of starter-homes has hit a decade low and Bloomberg says that the US housing market is cooling because prices are just too high. First time buyers need 23% of their income to purchase a home. Just a year ago that figure was 21%. The cost of these starter homes is the highest it has been since the housing bubble blew up back in 2008. 

Housing in America: Market Status

Housing in America: Market Status

Fewer Americans are home-owners versus when the study was first published in 1988. That says a lot about the current state of housing in America. Nearly one-third of American households, or 38.1 million, paid more than 30% of their incomes for housing in 2016, making them “cost-burdened."

It has particularly been a hard on youth, no longer able to move out of the nest. In general, Americans are also staying in one place for longer as they are reluctant to move.

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